The key driver of the future silver price is discussed in my interview with Turd at TFMetals Report. Most precious metal analysts focus on either technical analysis, market fundamentals or the debt based fiat monetary system as clues to where the price of silver is heading in the future. However, I believe key to silver’s future value is tied to ENERGY.
To listen to the interview, click on this link (TFmetals Report SRSrocco Interview) or the image below.
Here is part of the transcript from our conversation:
TFMetals: silver investment demand… back to silver and crude. crude oil and energy is biggest input to most manufacturing. from that standpoint silver and crude go together. now hft algos run everything. price of crude and euro with dollar go one-to-one. crude goes up and down via euro. currently down. you logo has EROI, explain in english why that is basis of what you do.
SRSrocco: sure, EROI is energy return on invested or on “energy invested”, Charles Hall coined term. EROI is the key to living, a person or a company or the Roman Empire. roman empire fell due to EROI. they go so big they couldn’t get more energy. in the 70’s EROI was 30 to 1, now at eagle fort its 5 to 1. Many oil companies are losing money. Chevron-Texaco and Conoco-Phillips are majors and they are losing money. we’ve seen peak production in top fields. we’ll go down from here. EROI is destroying system from within. why I’m big proponent of silver and gold.
TFMetals: before listener questions… most recent reports, updating trend you’ve been following. u.s. is net importer of phyzz silver.
SRSrocco: U.S. has been big silver importer for a while. India varies, they change due to investment on bar demand. U.S. silver imports peaked in 2011. Industrial consumption continues to fall. Investment demand will drive price, esp when it moves exponentially. I think speculation that JP Morgan is buying eagles is incorrect. insiders say big buyers are buying silver bullion.. good sign.
To listen to the entire interview, click the link here: TFmetals Report SRSrocco Interview
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